frm10q.htm
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C. 20549
 
FORM 10-Q
 (Mark One)
 
þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2010
 
OR
 
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ____ to ____
 
Commission file number 001-00035
 
GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)

 
New York
 
14-0689340
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
     
3135 Easton Turnpike, Fairfield, CT
 
06828-0001
(Address of principal executive offices)
 
(Zip Code)
 
(Registrant’s telephone number, including area code) (203) 373-2211
 
_______________________________________________
(Former name, former address and former fiscal year,
if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer þ
 
Accelerated filer ¨
 
Non-accelerated filer ¨
 
Smaller reporting company ¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ
 
There were 10,676,518,000 shares of common stock with a par value of $0.06 per share outstanding at March 26, 2010.

 
(1)

 


 
General Electric Company
 

 
   
Page
 
Part I - Financial Information
     
       
Item 1. Financial Statements
     
 
3
 
 
4
 
 
5
 
 
6
 
 
7
 
 
37
 
 
55
 
 
55
 
       
Part II - Other Information
     
       
        Item 1. Legal Proceedings   55  
 
56
 
 
57
 
 
58
 
 
Forward-Looking Statements
 
This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GECC does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of proposed financial services regulation; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

 
(2)

 

Part I. Financial Information
 
 
Item 1. Financial Statements.
 
General Electric Company and consolidated affiliates
 
Condensed Statement of Earnings
 
 
Three months ended March 31 (Unaudited)
 
Consolidated
 
 
GE(a)
 
Financial Services (GECS)
(In millions, except share amounts)
2010 
 
2009 
 
 
2010 
 
2009 
 
2010 
 
2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales of goods
$
 13,765 
 
$
 14,072 
 
 
$
 13,489 
 
$
 13,813 
 
$
 281 
 
$
 273 
Sales of services
 
 9,908 
 
 
 10,055 
 
 
 
 10,020 
 
 
 10,209 
 
 
– 
 
 
– 
Other income
 
 350 
 
 
 428 
 
 
 
 376 
 
 
 479 
 
 
– 
 
 
– 
GECS earnings from continuing operations
 
– 
 
 
– 
 
 
 
 539 
 
 
 979 
 
 
– 
 
 
– 
GECS revenues from services
 
 12,582 
 
 
 13,883 
 
 
 
– 
 
 
– 
 
 
 12,890 
 
 
 14,184 
   Total revenues
 
 36,605 
 
 
 38,438 
 
 
 
 24,424 
 
 
 25,480 
 
 
 13,171 
 
 
 14,457 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
 
 10,572 
 
 
 11,433 
 
 
 
 10,311 
 
 
 11,222 
 
 
 265 
 
 
 224 
Cost of services sold
 
 6,940 
 
 
 6,633 
 
 
 
 7,052 
 
 
 6,787 
 
 
– 
 
 
– 
Interest and other financial charges
 
 4,161 
 
 
 5,327 
 
 
 
 343 
 
 
 376 
 
 
 3,938 
 
 
 5,121 
Investment contracts, insurance losses and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   insurance annuity benefits
 
 747 
 
 
 746 
 
 
 
– 
 
 
– 
 
 
 787 
 
 
 773 
Provision for losses on financing receivables
 
 2,263 
 
 
 2,336 
 
 
 
– 
 
 
– 
 
 
 2,263 
 
 
 2,336 
Other costs and expenses
 
 9,095 
 
 
 9,337 
 
 
 
 3,537 
 
 
 3,364 
 
 
 5,733 
 
 
 6,129 
   Total costs and expenses
 
 33,778 
 
 
 35,812 
 
 
 
 21,243 
 
 
 21,749 
 
 
 12,986 
 
 
 14,583 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   before income taxes
 
 2,827 
 
 
 2,626 
 
 
 
 3,181 
 
 
 3,731 
 
 
 185 
 
 
 (126)
Benefit (provision) for income taxes
 
 (431)
 
 
 309 
 
 
 
 (788)
 
 
 (842)
 
 
 357 
 
 
 1,151 
Earnings from continuing operations
 
 2,396 
 
 
 2,935 
 
 
 
 2,393 
 
 
 2,889 
 
 
 542 
 
 
 1,025 
Loss from discontinued operations,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   net of taxes
 
 (390)
 
 
 (21)
 
 
 
 (390)
 
 
 (21)
 
 
 (387)
 
 
 (4)
Net earnings
 
 2,006 
 
 
 2,914 
 
 
 
 2,003 
 
 
 2,868 
 
 
 155 
 
 
 1,021 
Less net earnings attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   noncontrolling interests
 
 61 
 
 
 85 
 
 
 
 58 
 
 
 39 
 
 
 3 
 
 
 46 
Net earnings attributable to the Company
 
 1,945 
 
 
 2,829 
 
 
 
 1,945 
 
 
 2,829 
 
 
 152 
 
 
 975 
Preferred stock dividends declared
 
 (75)
 
 
 (75)
 
 
 
 (75)
 
 
 (75)
 
 
– 
 
 
– 
Net earnings attributable to GE common
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   shareowners
$
 1,870 
 
$
 2,754 
 
 
$
 1,870 
 
$
 2,754 
 
$
 152 
 
$
 975 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts attributable to the Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Earnings from continuing operations
$
 2,335 
 
$
 2,850 
 
 
$
 2,335 
 
$
 2,850 
 
$
 539 
 
$
 979 
   Loss from discontinued operations,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      net of taxes
 
 (390)
 
 
 (21)
 
 
 
 (390)
 
 
 (21)
 
 
 (387)
 
 
 (4)
   Net earnings attributable to the Company
$
 1,945 
 
$
 2,829 
 
 
$
 1,945 
 
$
 2,829 
 
$
 152 
 
$
 975 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per-share amounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Earnings from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Diluted earnings per share
$
 0.21 
 
$
 0.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Basic earnings per share
$
 0.21 
 
$
 0.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Net earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Diluted earnings per share
$
 0.17 
 
$
 0.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Basic earnings per share
$
 0.17 
 
$
 0.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
$
 0.10 
 
$
 0.31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis.
 
See Note 3 for other-than-temporary impairment amounts.
 
See accompanying notes. Separate information is shown for "GE" and "Financial Services (GECS)." Transactions between GE and GECS have been eliminated from the "Consolidated" columns.
 

 
(3)

 

General Electric Company and consolidated affiliates
Condensed Statement of Financial Position
 
Consolidated
 
 
GE(a)
 
Financial Services (GECS)
 
March 31,
 
December 31,
 
 
March 31,
 
December 31,
 
March 31,
 
December 31,
(In million, except share amounts)
2010 
 
2009 
 
 
2010 
 
2009 
 
2010 
 
2009 
 
(Unaudited)
 
 
 
 
(Unaudited)
 
 
 
(Unaudited)
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
 69,628 
 
$
 72,260 
 
 
$
 10,238 
 
$
 8,654 
 
$
 60,039 
 
$
 64,356 
Investment securities
 
 41,549 
 
 
 51,941 
 
 
 
 28 
 
 
 30 
 
 
 41,523 
 
 
 51,913 
Current receivables
 
 17,729 
 
 
 16,458 
 
 
 
 9,380 
 
 
 9,818 
 
 
– 
 
 
– 
Inventories
 
 11,751 
 
 
 11,987 
 
 
 
 11,674 
 
 
 11,916 
 
 
 77 
 
 
 71 
Financing receivables – net
 
 346,939 
 
 
 329,232 
 
 
 
– 
 
 
– 
 
 
 356,185 
 
 
 336,926 
Other GECS receivables
 
 9,993 
 
 
 14,177 
 
 
 
– 
 
 
– 
 
 
 14,527 
 
 
 18,752 
Property, plant and equipment – net
 
 68,016 
 
 
 69,212 
 
 
 
 12,090 
 
 
 12,495 
 
 
 55,926 
 
 
 56,717 
Investment in GECS
 
– 
 
 
– 
 
 
 
 68,517 
 
 
 70,833 
 
 
– 
 
 
– 
Goodwill
 
 64,910 
 
 
 65,574 
 
 
 
 36,411 
 
 
 36,613 
 
 
 28,499 
 
 
 28,961 
Other intangible assets – net
 
 11,545 
 
 
 11,929 
 
 
 
 8,307 
 
 
 8,450 
 
 
 3,238 
 
 
 3,479 
All other assets
 
 100,475 
 
 
 103,417 
 
 
 
 17,511 
 
 
 17,097 
 
 
 84,145 
 
 
 87,471 
Assets of businesses held for sale
 
 33,735 
 
 
 34,111 
 
 
 
 32,786 
 
 
 33,986 
 
 
 949 
 
 
 125 
Assets of discontinued operations
 
 1,085 
 
 
 1,520 
 
 
 
 50 
 
 
 50 
 
 
 1,035 
 
 
 1,470 
Total assets(b)
$
 777,355 
 
$
 781,818 
 
 
$
 206,992 
 
$
 209,942 
 
$
 646,143 
 
$
 650,241 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
 123,931 
 
$
 130,252 
 
 
$
 899 
 
$
 504 
 
$
 124,457 
 
$
 131,137 
Accounts payable, principally trade accounts
 
 14,498 
 
 
 19,703 
 
 
 
 10,013 
 
 
 10,373 
 
 
 8,261 
 
 
 13,275 
Progress collections and price adjustments accrued
 
 11,468 
 
 
 12,192 
 
 
 
 11,982 
 
 
 12,957 
 
 
– 
 
 
– 
Other GE current liabilities
 
 14,429 
 
 
 14,527 
 
 
 
 14,429 
 
 
 14,527 
 
 
– 
 
 
– 
Non-recourse borrowings of consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   securitization entities
 
 36,780 
 
 
 3,883 
 
 
 
– 
 
 
– 
 
 
 36,780 
 
 
 3,883 
Bank deposits
 
 38,310 
 
 
 38,923 
 
 
 
– 
 
 
– 
 
 
 38,310 
 
 
 38,923 
Long-term borrowings
 
 317,606 
 
 
 337,134 
 
 
 
 11,389 
 
 
 11,681 
 
 
 307,102 
 
 
 326,391 
Investment contracts, insurance liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   and insurance annuity benefits
 
 31,451 
 
 
 31,641 
 
 
 
– 
 
 
– 
 
 
 31,990 
 
 
 32,009 
All other liabilities
 
 55,652 
 
 
 58,861 
 
 
 
 35,210 
 
 
 35,232 
 
 
 20,566 
 
 
 23,756 
Deferred income taxes
 
 2,615 
 
 
 2,173 
 
 
 
 (4,285)
 
 
 (4,620)
 
 
 6,900 
 
 
 6,793 
Liabilities of businesses held for sale
 
 6,416 
 
 
 6,092 
 
 
 
 6,386 
 
 
 6,037 
 
 
 30 
 
 
 55 
Liabilities of discontinued operations
 
 1,248 
 
 
 1,301 
 
 
 
 176 
 
 
 163 
 
 
 1,072 
 
 
 1,138 
Total liabilities(b)
 
 654,404 
 
 
 656,682 
 
 
 
 86,199 
 
 
 86,854 
 
 
 575,468 
 
 
 577,360 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock (30,000 shares outstanding at
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   both March 31, 2010 and December 31, 2009)
 
– 
 
 
– 
 
 
 
– 
 
 
– 
 
 
– 
 
 
– 
Common stock (10,676,518,000 and 10,663,075,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   shares outstanding at March 31, 2010 and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   December 31, 2009, respectively)
 
 702 
 
 
 702 
 
 
 
 702 
 
 
 702 
 
 
 1 
 
 
 1 
Accumulated other comprehensive income – net(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Investment securities
 
 (342)
 
 
 (435)
 
 
 
 (342)
 
 
 (435)
 
 
 (343)
 
 
 (436)
   Currency translation adjustments
 
 1,424 
 
 
 3,836 
 
 
 
 1,424 
 
 
 3,836 
 
 
 13 
 
 
 1,372 
   Cash flow hedges
 
 (1,332)
 
 
 (1,734)
 
 
 
 (1,332)
 
 
 (1,734)
 
 
 (1,356)
 
 
 (1,769)
   Benefit plans
 
 (16,534)
 
 
 (16,932)
 
 
 
 (16,534)
 
 
 (16,932)
 
 
 (392)
 
 
 (434)
Other capital
 
 37,588 
 
 
 37,729 
 
 
 
 37,588 
 
 
 37,729 
 
 
 27,588 
 
 
 27,591 
Retained earnings
 
 125,446 
 
 
 126,363 
 
 
 
 125,446 
 
 
 126,363 
 
 
 43,006 
 
 
 44,508 
Less common stock held in treasury
 
 (31,757)
 
 
 (32,238)
 
 
 
 (31,757)
 
 
 (32,238)
 
 
– 
 
 
– 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total GE shareowners’ equity
 
 115,195 
 
 
 117,291 
 
 
 
 115,195 
 
 
 117,291 
 
 
 68,517 
 
 
 70,833 
Noncontrolling interests(d)
 
 7,756 
 
 
 7,845 
 
 
 
 5,598 
 
 
 5,797 
 
 
 2,158 
 
 
 2,048 
Total equity
 
 122,951 
 
 
 125,136 
 
 
 
 120,793 
 
 
 123,088 
 
 
 70,675 
 
 
 72,881 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
 777,355 
 
$
 781,818 
 
 
$
 206,992 
 
$
 209,942 
 
$
 646,143 
 
$
 650,241 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis.
 
(b)
Assets and liabilities of consolidated variable interest entities (VIEs) were $57,571 million and $49,056 million, respectively, at March 31, 2010. Substantially all of the assets of the VIEs can only be used to settle obligations of those VIEs. See Note 16.
 
(c)
The sum of accumulated other comprehensive income - net was $(16,784) million and $(15,265) million at March 31, 2010 and December 31, 2009, respectively.
 
(d)
Included accumulated other comprehensive income - net attributable to noncontrolling interests of $(187) million and $(188) million at March 31, 2010 and December 31, 2009, respectively.
 
See accompanying notes. Separate information is shown for "GE" and "Financial Services (GECS)." Transactions between GE and GECS have been eliminated from the "Consolidated" columns.
 

 
(4)

 

General Electric Company and consolidated affiliates
Condensed Statement of Cash Flows
 
Three months ended March 31 (Unaudited)
 
Consolidated
 
 
GE(a)
 
Financial Services (GECS)
(In millions)
2010 
 
2009 
 
 
2010 
 
2009 
 
2010 
 
2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows – operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
$
 2,006 
 
$
 2,914 
 
 
$
 2,003 
 
$
 2,868 
 
$
 155 
 
$
 1,021 
Less net earnings attributable to noncontrolling interests
 
 61 
 
 
 85 
 
 
 
 58 
 
 
 39 
 
 
 3 
 
 
 46 
Net earnings attributable to the Company
 
 1,945 
 
 
 2,829 
 
 
 
 1,945 
 
 
 2,829 
 
 
 152 
 
 
 975 
Loss from discontinued operations
 
 390 
 
 
 21 
 
 
 
 390 
 
 
 21 
 
 
 387 
 
 
 4 
Adjustments to reconcile net earnings attributable to the
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Company to cash provided from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Depreciation and amortization of property,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         plant and equipment
 
 2,475 
 
 
 2,731 
 
 
 
 550 
 
 
 550 
 
 
 1,925 
 
 
 2,181 
      Earnings from continuing operations retained by GECS
 
– 
 
 
– 
 
 
 
 (539)
 
 
 (979)
 
 
– 
 
 
– 
      Deferred income taxes
 
 320 
 
 
 (528)
 
 
 
 40 
 
 
 74 
 
 
 280 
 
 
 (602)
      Decrease (increase) in GE current receivables
 
 514 
 
 
 1,952 
 
 
 
 319 
 
 
 2,225 
 
 
– 
 
 
– 
      Decrease (increase) in inventories
 
 186 
 
 
 (158)
 
 
 
 213 
 
 
 (170)
 
 
 (6)
 
 
 12 
      Increase (decrease) in accounts payable
 
 679 
 
 
 (1,672)
 
 
 
 188 
 
 
 (555)
 
 
 322 
 
 
 (1,655)
      Increase (decrease) in GE progress collections
 
 (743)
 
 
 (724)
 
 
 
 (994)
 
 
 (755)
 
 
– 
 
 
– 
      Provision for losses on GECS financing receivables
 
 2,263 
 
 
 2,336 
 
 
 
– 
 
 
– 
 
 
 2,263 
 
 
 2,336 
      All other operating activities
 
 (866)
 
 
 (6,943)
 
 
 
 439 
 
 
 (165)
 
 
 (1,168)
 
 
 (6,698)
Cash from (used for) operating activities – continuing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   operations
 
 7,163 
 
 
 (156)
 
 
 
 2,551 
 
 
 3,075 
 
 
 4,155 
 
 
 (3,447)
Cash from (used for) operating activities – discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   operations
 
 (69)
 
 
 (45)
 
 
 
– 
 
 
– 
 
 
 (69)
 
 
 (45)
Cash from (used for) operating activities
 
 7,094 
 
 
 (201)
 
 
 
 2,551 
 
 
 3,075 
 
 
 4,086 
 
 
 (3,492)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows – investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
 
 (1,302)
 
 
 (2,560)
 
 
 
 (522)
 
 
 (756)
 
 
 (857)
 
 
 (1,896)
Dispositions of property, plant and equipment
 
 1,597 
 
 
 1,183 
 
 
 
– 
 
 
– 
 
 
 1,597 
 
 
 1,183 
Net decrease (increase) in GECS financing receivables
 
 10,880 
 
 
 18,004 
 
 
 
– 
 
 
– 
 
 
 11,340 
 
 
 17,962 
Proceeds from principal business dispositions
 
 1,842 
 
 
 9,021 
 
 
 
 1,672 
 
 
 175 
 
 
– 
 
 
 8,846 
Payments for principal businesses purchased
 
 (18)
 
 
 (7,128)
 
 
 
 (18)
 
 
 (306)
 
 
– 
 
 
 (6,822)
Capital contribution from GE to GECS
 
– 
 
 
– 
 
 
 
– 
 
 
 (9,500)
 
 
– 
 
 
– 
All other investing activities
 
 6,001 
 
 
 (2,524)
 
 
 
 (20)
 
 
 54 
 
 
 6,181 
 
 
 (1,935)
Cash from (used for) investing activities – continuing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   operations
 
 19,000 
 
 
 15,996 
 
 
 
 1,112 
 
 
 (10,333)
 
 
 18,261 
 
 
 17,338 
Cash from (used for) investing activities – discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   operations
 
 9 
 
 
 47 
 
 
 
– 
 
 
– 
 
 
 9 
 
 
 47 
Cash from (used for) investing activities
 
 19,009 
 
 
 16,043 
 
 
 
 1,112 
 
 
 (10,333)
 
 
 18,270 
 
 
 17,385 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows – financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in borrowings (maturities of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   90 days or less)
 
 (1,824)
 
 
 (13,620)
 
 
 
 (151)
 
 
 990 
 
 
 (1,637)
 
 
 (15,852)
Net increase (decrease) in bank deposits
 
 (613)
 
 
 (3,336)
 
 
 
– 
 
 
– 
 
 
 (613)
 
 
 (3,336)
Newly issued debt (maturities longer than 90 days)
 
 16,087 
 
 
 31,164 
 
 
 
 120 
 
 
 1,226 
 
 
 15,914 
 
 
 30,035 
Repayments and other reductions (maturities longer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   than 90 days)
 
 (40,032)
 
 
 (27,313)
 
 
 
 (523)
 
 
 (1,580)
 
 
 (39,509)
 
 
 (25,733)
Net dispositions (purchases) of GE shares for treasury
 
 80 
 
 
 245 
 
 
 
 80 
 
 
 245 
 
 
– 
 
 
– 
Dividends paid to shareowners
 
 (1,143)
 
 
 (3,350)
 
 
 
 (1,143)
 
 
 (3,350)
 
 
– 
 
 
– 
Capital contribution from GE to GECS
 
– 
 
 
– 
 
 
 
– 
 
 
– 
 
 
– 
 
 
 9,500 
All other financing activities
 
 (594)
 
 
 (798)
 
 
 
 (203)
 
 
 (194)
 
 
 (391)
 
 
 (604)
Cash from (used for) financing activities – continuing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   operations
 
 (28,039)
 
 
 (17,008)
 
 
 
 (1,820)
 
 
 (2,663)
 
 
 (26,236)
 
 
 (5,990)
Cash from (used for) financing activities – discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   operations
 
– 
 
 
– 
 
 
 
– 
 
 
– 
 
 
– 
 
 
– 
Cash from (used for) financing activities
 
 (28,039)
 
 
 (17,008)
 
 
 
 (1,820)
 
 
 (2,663)
 
 
 (26,236)
 
 
 (5,990)
Effect of currency exchange rate changes on cash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   and equivalents
 
 (756)
 
 
 (189)
 
 
 
 (259)
 
 
 (42)
 
 
 (497)
 
 
 (147)
Increase (decrease) in cash and equivalents
 
 (2,692)
 
 
 (1,355)
 
 
 
 1,584 
 
 
 (9,963)
 
 
 (4,377)
 
 
 7,756 
Cash and equivalents at beginning of year
 
 72,444 
 
 
 48,367 
 
 
 
 8,654 
 
 
 12,090 
 
 
 64,540 
 
 
 37,666 
Cash and equivalents at March 31
 
 69,752 
 
 
 47,012 
 
 
 
 10,238 
 
 
 2,127 
 
 
 60,163 
 
 
 45,422 
Less cash and equivalents of discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   at March 31
 
 124 
 
 
 182 
 
 
 
– 
 
 
– 
 
 
 124 
 
 
 182 
Cash and equivalents of continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   at March 31
$
 69,628 
 
$
 46,830 
 
 
$
 10,238 
 
$
 2,127 
 
$
 60,039 
 
$
 45,240 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis.
 
See accompanying notes. Separate information is shown for "GE" and "Financial Services (GECS)." Transactions between GE and GECS have been eliminated from the "Consolidated" columns and are discussed in Note 17.
 

 
(5)

 

Summary of Operating Segments
General Electric Company and consolidated affiliates
 
 
Three months ended March 31
 
(Unaudited)
(In millions)
2010 
 
2009 
 
 
 
 
 
 
Revenues
 
 
 
 
 
   Energy Infrastructure(a)
$
 8,655 
 
$
 9,082 
   Technology Infrastructure(a)
 
 8,659 
 
 
 9,523 
   NBC Universal
 
 4,320 
 
 
 3,524 
   GE Capital(a)
 
 12,331 
 
 
 13,775 
   Home & Business Solutions(a)
 
 1,940 
 
 
 1,924 
      Total segment revenues
 
 35,905 
 
 
 37,828 
Corporate items and eliminations
 
 700 
 
 
 610 
Consolidated revenues
$
 36,605 
 
$
 38,438 
 
 
 
 
 
 
Segment profit(b)
 
 
 
 
 
   Energy Infrastructure(a)
$
 1,481 
 
$
 1,318 
   Technology Infrastructure(a)
 
 1,403 
 
 
 1,702 
   NBC Universal
 
 199 
 
 
 391 
   GE Capital(a)
 
 607 
 
 
 1,029 
   Home & Business Solutions(a)
 
 71 
 
 
 45 
      Total segment profit
 
 3,761 
 
 
 4,485 
Corporate items and eliminations
 
 (295)
 
 
 (417)
GE interest and other financial charges
 
 (343)
 
 
 (376)
GE provision for income taxes
 
 (788)
 
 
 (842)
Earnings from continuing operations attributable
 
 
 
 
 
  to the Company
 
 2,335 
 
 
 2,850 
Loss from discontinued operations,
 
 
 
 
 
  net of taxes, attributable to the Company
 
 (390)
 
 
 (21)
Consolidated net earnings attributable to
 
 
 
 
 
   the Company
$
 1,945 
 
$
 2,829 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Effective January 1, 2010, we reorganized our segments. We have reclassified prior-period amounts to conform to the current-period presentation. See Note 1 for a description of the reorganization.
 
(b)
Segment profit always excludes the effects of principal pension plans, results reported as discontinued operations, earnings attributable to noncontrolling interests of consolidated subsidiaries and accounting changes, and may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges and balances; technology and product development costs; certain gains and losses from acquisitions or dispositions; and litigation settlements or other charges, responsibility for which preceded the current management team. Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segment’s management is measured – excluded in determining segment profit, which we sometimes refer to as “operating profit,” for Energy Infrastructure, Technology Infrastructure, NBC Universal and Home & Business Solutions; included in determining segment profit, which we sometimes refer to as “net earnings,” for GE Capital.
 
See accompanying notes to condensed, consolidated financial statements.

 
(6)

 


 
Notes to Condensed, Consolidated Financial Statements (Unaudited)
 
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The accompanying condensed, consolidated financial statements represent the consolidation of General Electric Company and all companies that we directly or indirectly control, either through majority ownership or otherwise. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2009 (2009 Form 10-K), which discusses our consolidation and financial statement presentation. As used in this report on Form 10-Q (Report) and in our Annual Report on Form 10-K, “GE” represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis; GECS consists of General Electric Capital Services, Inc. and all of its affiliates; and “Consolidated” represents the adding together of GE and GECS with the effects of transactions between the two eliminated.

Effective January 1, 2010, we reorganized our segments to better align our Consumer & Industrial and Energy businesses for growth. As a result of this reorganization, we created a new segment called Home & Business Solutions that includes the Appliances and Lighting businesses from our previous Consumer & Industrial segment and the retained portion of the GE Fanuc Intelligent Platforms business of our previous Enterprise Solutions business (formerly within our Technology Infrastructure segment). In addition, the Industrial business of our previous Consumer & Industrial segment and the Sensing & Inspection Technologies and Digital Energy businesses of our previous Enterprise Solutions business are now part of the Energy business within the Energy Infrastructure segment. The Security business of Enterprise Solutions is reported in Corporate Items and Eliminations for periods prior to its sale in the first quarter of 2010. Also, effective January 1, 2010, the Capital Finance segment was renamed GE Capital and includes all of the continuing operations of General Electric Capital Corporation (GECC). In addition, the Transportation Financial Services business, previously reported in GE Capital Aviation Services (GECAS), is now included in Commercial Lending and Leasing (CLL) and our Consumer business in Italy, previously reported in Consumer, is now included in CLL. GE includes Energy Infrastructure, Technology Infrastructure, NBC Universal and Home & Business Solutions. GECS includes GE Capital. We have reclassified certain prior-period amounts to conform to the current-period presentation. Unless otherwise indicated, information in these notes to condensed, consolidated financial statements relates to continuing operations.

In the first quarter of 2010, we have included a separate line on the statement of cash flows for the effect of currency exchange rate changes on cash and equivalents. We had previously included the effect of currency exchange rate changes on cash and equivalents in “All other operating activities” for GE and “All other investing activities” for GECS, as the effect was insignificant.

Accounting Changes
 
On January 1, 2010, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2009-16 and ASU 2009-17, amendments to Accounting Standards Codification (ASC) 860, Transfers and Servicing, and ASC 810, Consolidation, respectively (ASU 2009-16 & 17). ASU 2009-16 eliminates the Qualified Special Purpose Entity (QSPE) concept, and ASU 2009-17 requires that all such entities be evaluated for consolidation as Variable Interest Entities (VIEs). Adoption of these amendments resulted in the consolidation of all of our sponsored QSPEs. In addition, we consolidated assets of VIEs related to direct investments in entities that hold loans and fixed income securities, a media joint venture and a small number of companies to which we have extended loans in the ordinary course of business and subsequently were subject to a troubled debt restructuring (TDR).

We consolidated the assets and liabilities of these entities at amounts at which they would have been reported in our financial statements had we always consolidated them. We also deconsolidated certain entities where we did not meet the definition of the primary beneficiary under the revised guidance; however the effect was insignificant. The incremental effect on total assets and liabilities, net of our investment in these entities, was an increase of $31,097 million and $33,042 million, respectively. The net reduction of total equity (including noncontrolling interests) was $1,945 million, principally related to the reversal of previously recognized securitization gains as a cumulative effect adjustment to retained earnings. See Note 16 for additional information.

 
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The amended guidance on ASC 860 changed existing derecognition criteria in a manner that significantly narrows the types of transactions that will qualify as sales. The revised criteria apply to transfers of financial assets occurring after December 31, 2009.

Interim Period Presentation
 
The condensed, consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these condensed, consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. It is suggested that these condensed, consolidated financial statements be read in conjunction with the financial statements and notes thereto included in our 2009 Form 10-K. We label our quarterly information using a calendar convention, that is, first quarter is labeled as ending on March 31, second quarter as ending on June 30, and third quarter as ending on September 30. It is our longstanding practice to establish interim quarterly closing dates using a fiscal calendar, which requires our businesses to close their books on either a Saturday or Sunday, depending on the business. The effects of this practice are modest and only exist within a reporting year. The fiscal closing calendar from 1993 through 2013 is available on our website, www.ge.com/secreports.


2. ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
 
Assets and Liabilities of Businesses Held for Sale
 
On December 3, 2009, we entered into an agreement with Comcast Corporation to transfer the assets of the NBCU business to a newly formed entity, which will consist of our NBCU businesses and Comcast Corporation's cable networks, regional sports networks, certain digital properties and certain unconsolidated investments. Pursuant to the transaction, we expect to receive $6,500 million in cash ($7.1 billion less certain adjustments based on various events between contract signing and closing) and will own a 49% interest in the newly formed entity. The transaction is subject to receipt of various regulatory approvals and is expected to close within the next year.

We also entered into an agreement whereby we will acquire approximately 38% of Vivendi’s interest in NBCU for $2,000 million on September 26, 2010, if the transaction described above has not yet closed. Provided the transaction subsequently closes, we will acquire the remaining Vivendi NBCU interest for $3,578 mi